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Thursday, November 26, 2015

One of the most common reasons why people fall for investment scams is because of the very high returns promised for a very short period of time.The inspiration of this post is to hopefully give investors out there a quick mental framework on how to think rationally about investment returns and hopefully make them a little better in identifying investments that are plausible vs hoax.Case in point is one of the Philippine's biggest investment scam w/c reportedly promises 62% return in just 20 days or equivalent to 1,131.5% per year according to PinoyMoneyTalk.com.Now quoted at 62% for 20 days it might mentally deceive ones brain to accept the very attractive offer. But when you do the math, the numbers will really look funny and on first glance would look nothing but - for lack of a better word, a joke.Here's why.Let's assume you were offered that deal 27 years ago and say you had P10,000 back then. How much money would you have now at 1,131.5% return every year? Note that the reason why I have chosen 27 years is because we will
compare it later with LEGIT investments that had recorded data going
back 27 years.The answer is:

Thursday, November 5, 2015

The "Top 25 Cheapest Stocks in the Philippines" is a monthly publication by The Filipino Investor to give investors in the PSE a sense on what are the cheapest stocks at the current market prices. This will be particularly useful to value investors a.k.a. those investors who like to buy companies whose current market price is selling cheap relative to quantifiable metrics such as earnings, sales, book value, dividend etc.

We would like to remind the readers of this website to do due diligence before investing specially on the more iliquid names. Cheers and enjoy!

Note:1. P/E, EV/EBITDA, P/B, P/S were arranged from lowest to highest (lower the numbers means they are cheaper)2. DY was arranged from highest to lowest (higher numbers are better/cheaper)3. Data as of 05-Nov-15